IPA Releases First Industry Analytics on Direct Investments

Published 11:32 AM ET Wed, 10 June 2015
Globe Newswire

ELLICOTT CITY, Md., June 10, 2015 (GLOBE NEWSWIRE) -- As it celebrates its 30th anniversary of national leadership for the direct investments industry, the Investment Program Association ("IPA") announced today an agreement with DST Systems, Inc. ("DST") to provide analytics reporting on non-listed REITs and BDCs. DST's Applied Analytics Group will serve as statistical and analytical advisor to the IPA.

DST is the largest provider of transfer agency services and has access to data at the broker-dealer, advisor, and shareholder levels. Working jointly with DST's Applied Analytics Group, the IPA plans to identify and research trends on products, sponsors, broker-dealers, advisors, and shareholders related to direct investments.

Going forward the IPA plans to issue regular updates on industry statistics and trends. It expects to publish the first full report in the coming months. Based on the initial data sets, several key findings have emerged (all for the calendar year 2014):

More than 30,000 financial advisors used non-listed REITs or BDCs in their practices;

More than 1.2 million investors had non-listed REITs or BDCs in their investment portfolio;

Approximately $16,900 was the average account size;

84% of investors were age 50 and over, and 41% were age 65 and over;

$21.6 billion was invested in non-listed REITs and BDCs;

43% (or $9.2 billion) was invested through Qualified Accounts;

$5.9 billion in distributions was paid to investors, 30.4% of which was reinvested.

"The IPA is excited to offer new insight into direct investments," commented Kevin Hogan, the IPA's CEO and President. "Our newfound ability to conduct research and make decisions based on real-time data will help shape the future of the market. In collaboration with DST, we will address important issues in ways we never thought possible."

According to Chris Shaw, Operations Officer for DST Asset Management Solutions, the joint project is an opportunity for both organizations to better service the industry.

"We view this collaboration as an opportunity for both organizations to provide insight about these unique investment vehicles," says Shaw. "We believe that research based on real-time data can be an important tool for the entire industry."

About The Investment Program Association

The Investment Program Association (IPA) was formed in 1985 to provide effective national leadership for the direct investment industry. The IPA supports individual investor access to a variety of asset classes not correlated to the traded markets and historically available only to institutional investors. These include public non-listed REITs (NL REITs), business development companies (BDCs), energy and equipment leasing programs, and private equity offerings. For 30 years the IPA has successfully championed the growth and improvement of such products, which have increased in popularity with financial professionals and investors alike. The mission of the IPA is advocating direct investments through education. Access the wealth of IPA educational materials here, or visit the IPA online for more information about becoming a member.